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however, part of the rim protrudes from the side of the tire, exposing it a lot more than necessary. other people have gotten wheel and tire packages and it doesn't look like mine... theirs looks like the tire covers the wheel completely

would i just be able to get wider tires or is that not how this stuff works?

I have had the Conti DWS,DW and Mich. PSS. Big difference in between the Conti and Michelins. The Michelins are worth every cent. I thought the same...Mich were overpriced, but after getting them, they are worth it. The Conti sidewall are not as hard...DW is soft...but the DWS seemed very soft. You will see the difference on your freeway exit at a moderate speed. I do have a dedicate set of winter tires.

How hard would I have to drive my car to feel the handling difference between Michelin PSS and Continental DWS? Is it that drastic?

They are different in pretty much every way imaginable. The PSS is a dedicated summer tire, whereas the DWS is an all-season. The PSS has excellent grip in most driving scenarios, but you can't use them in snow.

For everyday driving, either will be fine. When you push them hard, the PSS will outshine the DWS by a long shot. That being said, the DWS is about as good as it gets for an all-season.